Doge Coin Investment: A Beginner's Guide

Dogecoin is a cryptocurrency that was started as a joke in 2013. It was created by Jackson Palmer and Billy Markus, who intended to make a coin that no one would seriously invest in. However, since its launch, Dogecoin has gained a passionate following and become the world's biggest memecoin.

Dogecoin is considered a risky investment due to its high volatility and limited utility. It is often referred to as a meme crypto and is not suitable for long-term investors. However, it can be a lucrative short-term investment for those willing to take on the risk.

If you are considering investing in Dogecoin, it is important to remember that it is a speculative asset and its value is largely based on market sentiment. The price of Dogecoin has been influenced by celebrities such as Elon Musk, who have openly endorsed it.

Before investing, it is recommended to create an account on a cryptocurrency exchange that lists Dogecoin, complete the identity verification process, and transfer money from your bank account to the exchange. Some popular exchanges that offer Dogecoin include Uphold, Webull, Robinhood, Kraken, and Crypto.com.

Where can I buy Dogecoin?

Dogecoin is not as widely available as other cryptocurrencies like Bitcoin, Litecoin, or Ethereum. Popular exchanges such as Coinbase and BlockFi do not currently support Dogecoin.

However, there are still several ways to buy Dogecoin. For example, you can use Uphold, Webull, Robinhood, Kraken, or Crypto.com. Before buying Dogecoin or any other cryptocurrency, it is recommended that you get a crypto wallet to store your crypto securely and get it off the exchange. Exchanges are prime targets for hackers, so storing your crypto in a wallet gives you full control and adds an extra layer of security. Crypto wallets typically integrate into browsers or mobile apps and come with a password, which you should keep safe. Hardware wallets are another option, though they tend to cost between $70 and $100, so you probably don't need one unless you're buying large amounts of crypto.

Once you have chosen an exchange and (optionally) a wallet, you can start the process of buying Dogecoin. You will usually have three payment methods to choose from:

• Credit card: This is the fastest and easiest method, but it is also the most expensive, with fees ranging from just under 2% up to 3%, plus a flat rate.
• Bank transfer: This is the slowest method, taking 2-3 days to complete.
• Cryptocurrency: This option involves trading cryptocurrency you already own with another trader who owns DOGE. Fees are typically lower than 1% when using this method, but direct trading can be complex and intimidating for beginners.

After purchasing Dogecoin, you can move it from the exchange to your wallet by supplying your wallet address.

Dogecoin's pros and cons

Dogecoin: Pros and Cons

Dogecoin is a cryptocurrency that was started as a joke in 2013, based on a meme featuring the Japanese dog breed Shiba Inu. It has since gained popularity and started having real value for crypto traders as a long-term investment.

Pros:

• Day Trading: Dogecoin can be day traded, allowing investors to profit by capitalising on its volatility.
• Social Media Presence: Dogecoin has a large following on social media networks such as Reddit, Twitter, and Facebook, which can be used to monitor the direction of its price.
• Elon Musk: Elon Musk has been a prominent supporter of Dogecoin, and his positive comments have sparked interest and led to several exchanges listing the cryptocurrency for trading and investing.
• Humanitarian and Friendly Feel: Dogecoin has been used for humanitarian causes and has a friendly image, which has drawn traders and investors to the asset.
• Availability: Dogecoin is infinitely mineable, with no limit to its supply, making it available for purchase by anyone.
• Trade Volume: Dogecoin's trade volume has been soaring, indicating strong investor interest and confidence in the potential of the asset.
• Exchange Listings: Dogecoin has been listed on several popular cryptocurrency exchanges and brokerages, including eToro, Gemini, and Coinbase, increasing its accessibility to investors.
• Transaction Speed: Dogecoin scales relatively faster than Bitcoin, which could help its adoption as a transactional currency.
• Mainstream Partnerships: Dogecoin has benefited from partnerships with mainstream companies such as COVCARE and the Dallas Mavericks, which adds legitimacy and credibility to the cryptocurrency.

Cons:

• Risk of Loss: Dogecoin is highly volatile and risky, with a history of dramatic price increases and decreases. There is a potential for significant financial loss.
• Lack of Decentralisation: Dogecoin may not have a decentralised governance structure, as there is no cap on its supply, and its foundation could change its monetary policy.
• Poor Technical Support: Dogecoin has a relatively small development team compared to other cryptocurrencies, and there have been no technological updates since 2015.
• Pump and Dump Schemes: Dogecoin has been associated with pump and dump schemes, where a group of people manipulate the price by buying a large number of coins and then selling them at a higher price, causing losses for long-term investors.
• Limited Transactional Use: Dogecoin is primarily used as a digital currency and has less transactional significance than other cryptocurrencies such as Bitcoin and Ethereum.
• Over-reliance on Elon Musk: The price of Dogecoin has been heavily influenced by Elon Musk's comments and tweets, which may not be a sustainable driver of its value in the long term.
• Over-reliance on Bitcoin: Dogecoin has followed the price patterns of Bitcoin and other cryptocurrencies, and its value may be negatively impacted if these coins experience unfavourable market conditions.
• Lack of Scarcity: Dogecoin does not have a supply cap, and the developers have added more coins to the maximum supply annually, reducing the principle of scarcity.

Dogecoin's future

Dogecoin is a highly speculative and volatile investment. It was created as a joke based on a meme and its long-term viability is questionable. Dogecoin is unlikely to be a good investment for those seeking a serious, long-term investment. However, it could be a lucrative short-term investment for those willing to take a gamble.

On the other hand, Dogecoin faces several challenges and risks. Firstly, it has limited use cases and is not widely accepted as a form of payment. This lack of practical utility could hinder its long-term success. Secondly, Dogecoin has an unlimited supply, which could dampen its price appreciation compared to coins with capped supplies. Additionally, centralization concerns arise as the top 10 holders control 46% of all Dogecoin coins. Finally, Dogecoin's value is heavily influenced by social media hype and the actions of a few key individuals, making it vulnerable to market volatility.

Despite these challenges, some analysts remain optimistic about Dogecoin's future. They argue that its low fees, fast transactions, and strong community could drive wider adoption and boost its value. According to CoinPedia, Dogecoin's price could reach $0.3751 by the end of 2024 and potentially surpass $1 by 2025. However, it's important to approach these predictions with caution, as the cryptocurrency market is highly volatile and unpredictable.

In conclusion, Dogecoin's future is highly speculative, and its success will depend on addressing technical challenges, increasing utility, and maintaining community support. While it may have short-term gains, it is not a stable, long-term investment like Bitcoin.

Dogecoin's price history

Despite the hype, Dogecoin prices fell below $0.001 in the second quarter of 2017. It wasn't until November 2017 that Dogecoin's price found support again from bullish investors. By January 2018, Dogecoin's price had reached a peak of $0.018.

It took over three years for Dogecoin to reach this level again, after a prolonged period of low trading activity. In January 2021, Dogecoin began a massive rise, spurred by renewed interest from Tesla CEO Elon Musk and other celebrity supporters. The coin posted a 9,884% gain between January and May 2021, reaching a new all-time high of $0.74.

Dogecoin's price has continued to fluctuate since then, with a high of $0.55 in May 2021 and a low of around $0.06 in June 2024. As of August 2024, Dogecoin's price is around $0.10, with a market cap of $15.35 billion.

Dogecoin's price predictions

Dogecoin is a highly volatile cryptocurrency that was started as a joke in 2013. It has seen huge price swings over the years, with its lowest price being $0.0000869 in May 2015 and its peak price of 74 cents in May 2021. Dogecoin's price has been influenced by Tesla CEO Elon Musk's tweets and other celebrity endorsements.

Short-Term Predictions:

• According to CoinCodex, Dogecoin may reach $0.89 by August 31, 2024, and then deteriorate further, noting a 13% fall in its price by September 17, 2024.
• Another prediction estimates Dogecoin's price to be at an average of $0.115 in 2024, with the potential to reach a maximum of $0.120.
• A more optimistic forecast predicts Dogecoin's price to be between $0.203 and a celebratory $0.247 by the end of 2025.

Long-Term Predictions:

• By 2028, Dogecoin is predicted to handle unprecedented transaction volumes seamlessly, with prices potentially reaching a peak of $0.634.
• By 2030, Dogecoin is expected to play a pivotal role in the crypto economy, with a potential zenith of $1.37.
• By 2040, Dogecoin is projected to rise to a peak of $53.87, with an average trading price of around $47.13.
• By 2050, Dogecoin may gain tremendous momentum, achieving a record high of $117.20, with an average trading price of around $105.46.

It is important to note that these predictions are highly speculative, and the cryptocurrency market is extremely volatile. The price of Dogecoin could fluctuate significantly, and there is a potential for loss when investing in cryptocurrencies.

Frequently asked questions